Most Influential Crypto 2023

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The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

• CoinDesk's Most Influential 2023

• Bitcoin will close 2023 as one of the top-performing assets.

• Japan proposes scrapping corporate tax on unrealized crypto gains.

• Hong Kong could be the next hub for spot Bitcoin ETFs.

• Dictionomics: Unrealized Crypto Gains

Global Biscuits

CoinDesk's Most Influential 2023

CoinDesk has released its "Most Influential 2023" list, recognizing individuals who made significant impacts on the world of crypto during the year. The list includes 10 top honorees and 40 additional influential figures. Notable names in the top 10 include Sam Bankman-Fried, SEC Chair Gary Gensler, Ryan Selkis (Messari CEO), Casey Rodarmor (creator of Ordinals Theory), Brian Armstrong (Coinbase CEO), Jose Fernandez da Ponte (PayPal), Paolo Ardoino (Tether CEO), Pascal Gauthier (Ledger CEO), Larry Fink (BlackRock CEO), and Ian Allison (CoinDesk journalist). CoinDesk also collaborated with 10 artists to create NFTs of the honorees, and an auction is set to take place, with proceeds benefiting The Hunger Project, a New York non-profit. The profiles and artwork aim to capture the major stories and themes of the crypto industry in 2023.

Bitcoin will close 2023 as one of the top-performing assets.
Despite macroeconomic challenges and industry headwinds, Bitcoin is predicted to close 2023 as one of the top-performing assets, with a gain of over 160%, according to Kaiko Research. The analysis highlights three stages in BTC price action, noting that the cryptocurrency traded mostly between $25,000 and $30,000 from March to October before surging above $40,000 following BlackRock's filing for a spot Bitcoin ETF in June. The report also points to the reversal of Bitcoin's correlation with the Nasdaq 100 stock market index, emphasizing the potential influence of macroeconomic factors and market trends on Bitcoin's value.

Tastes of the regions

Japan proposes scrapping corporate tax on unrealized crypto gains.
Japan's cabinet has approved a proposal to end the taxation of unrealized cryptocurrency gains, according to a report by CoinDesk Japan. The ruling Liberal Democratic party's proposal, now awaiting debate in the Japanese parliament, would eliminate corporate taxation on the difference between the market and book values of crypto assets issued by other companies. If enacted, this would address a discrepancy in the treatment of third-party issued assets compared to those issued by holders, who are currently not taxed on mark-to-market values. The move aims to boost the development of Japan's Web3 industry, which has faced challenges due to the existing tax structure. The government, under Prime Minister Fumio Kishida, recognizes the importance of the Web3 industry and has been seeking ways to encourage its growth as part of broader economic reform. 

Hong Kong could be the next hub for spot Bitcoin ETFs.
Industry leaders are speculating that Hong Kong could become the next hub for spot bitcoin exchange-traded funds (ETFs) in Asia, following anticipation of U.S. approval for such ETFs. Yat Siu, chairman of web3 investor Animoca Brands, highlighted the encouraging stance of Hong Kong's Securities and Futures Commission (SFC) toward digital assets, suggesting that the region may be open to spot bitcoin ETFs. Hong Kong has shown a positive attitude toward cryptocurrencies, differentiating itself from the Chinese mainland's broader crackdown. Julia Leung, CEO of Hong Kong's SFC, mentioned that the regulator is assessing spot crypto ETFs, signaling potential regulatory support.

Dictionomics:   Unrealized Crypto Gains

Unrealized crypto gains are the increase in value of a cryptocurrency asset that has not been sold or exchanged for fiat currency or another cryptocurrency. They are also known as paper profits, as they only exist on paper until they are realized by selling or exchanging the asset. Unrealized crypto gains are subject to market fluctuations and may change over time. They are not taxable until they are realized, but they may affect the tax basis of the asset and the capital gains tax rate when they are realized. Capital gains tax is a tax on the profit from selling or exchanging an asset that has increased in value. The capital gains tax rate depends on the type and duration of the asset, and the income level of the taxpayer.

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